Many investors buy stocks for the long term. After buying good, solid companies, they sit on their investments year after year in the hope of seeing profits compound.
But even for these buy-and-hold investors, “long term” rarely equates to “forever.” Money Talks News reader Jane M worries she may be stuck with a few blue-chip stocks for the rest of her life.
Jane Money Talks News asks:
“I have some stocks (Ford and Disney) and I want to sell them. The brokerage I bought them from is no longer in business.
I brought my certificates to a brokerage company in the city. But they said they don’t sell. But if I want to buy more, they can help me. So, will I be stuck with these for the rest of my life? Please help.”
Stacey Johnson, CPA, founder of Money Talks News, explains that Jane is referring to the old-fashioned paper certificates that were once issued to people who bought shares of stock. Of course, today shares are held electronically.
When Jane brought her paper certificates to a local brokerage firm, the company said it could not accept them. That’s why she’s wondering whether she’s stuck with the certificates — and her stock — forever.
Fortunately, that is not the case. To fix the problem, former Wall Street stock broker Stacey says Jane can contact a stock transfer agent directly. In the case of Ford and Disney, that agent is ComputerShare. Stacey continues:
“They can sell the shares for you or convert them electronically. Or, your brokerage firm can do the same if you mail them a medallion signature guarantee.”
Medallion Signature Guarantee is a special type of stamp that guarantees the authenticity of a signature when someone is attempting to transfer securities such as stocks.
Stacy says that if there is another brokerage company with an office in Jane’s city, she can come with her certifications and the company should be able to handle her position. his video reaction To Jane.
If not, Jane will need to obtain the medallion signature guarantee and mail the certificates to a transfer agent or non-local brokerage firm willing to accept them.
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